Do those with more formal education have better health insurance opportunities?

Inequalities in the availability of employer-based health insurance due to differences in formal educational attainment are examined. 7762 fully employed adult respondents are sampled from the 1987 National Medical Expenditure Survey. Respondents are classed as covered by employer, sponsored or individually purchased insurance or uninsured. Probit regression is used to predict the likelihood of employer sponsored health insurance. Fully employed persons with higher levels of formal education are more likely to have insurance. The likelihood of employer sponsored coverage is determined more strongly by industrial classes rather than the result of educational attainment alone. Based on the impact of employment and premium share on insurance type, incentives for the development of employee insurance purchasing cooperatives and premium subsidies may be feasible in increasing access to affordable health insurance. These policies may help alleviate detrimental effects to health status by reducing the negative fringe benefit effects of occupational selection. [JEL I1; J31; J33] (C) 1998 Elsevier Science Ltd. All rights reserved.